Repsol sells Shell LNG assets for $8.23 billion
Published on Feb 27, 2013 6:20 AM
MADRID (AFP) - Spanish energy group Repsol said on Tuesday it had sold its liquefied natural gas (LNG) assets to Shell for US$6.65 billion (S$8.23 billion) in cash and debt.
"The agreement, which generates a US$3.5 billion pre-tax capital gain for Repsol, includes the assets in Trinidad & Tobago (Atlantic LNG), Peru LNG and Bahia de Bizkaia Electricidad (BBE) as well as the LNG sale contracts and time charters," the company said in a statement.
Repsol said it is keeping its LNG assets in Canada, and signed a supply agreement with Shell, as the current low gas prices in North America would not allow it to earn a return on the Canaport regasification terminal.
Repsol said the transaction, which it expects to close before the end of the year, will mean that it surpasses the 4.5 billion euros in divestments outlined in the 2012-2016 strategic plan.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!